The number of permits issued for homes in the capital was up 220 percent at 4,395. The number of completed homes climbed 46.7 percent to 2,061 during the period. A little more than 200 of those homes were in Budapest, while about 700 were in other big cities. The average size of the completed homes was 105 sqm. Private individuals built 58 percent of the homes.
In a statement reacting to the KSH report, the Economy Ministry attributed the rise to government housing programmes, the home purchase subsidy system (CSOK) and a low VAT for house and apartment sales, which the ministry said have spurred the sector on from 2016. The number of construction permits issued has been growing continuously for three years, and growth is now visible in actual house construction data too, the statement said.
The sum total of home loans has grown by nearly 50 percent in January-February 2017 year-on-year, the statement said. This is likely to be due to the combination of attractive interest rates and a growing sense of financial stability within the population, it said. Government measures aim to boost both supply and demand in the market, and so growth is likely to continue, the statement said.